Absa plans Islamic banking in Ghana, after take-over of Barclays Africa

South African banking group, Absa which will soon take-over Barclays Africa, has indicated it plans to start Islamic banking in Ghana and other African countries.

Absa sealed a £1.3 billion deal with Barclays December 6, 2012 to takeover the British bank’s Africa operations. The move will enable Absa to acquire the operations of Barclays in nine African countries including Ghana where it will take over 100% of the bank’s operation in the country.

In an interview with the South African news publication, BusinessDay on December 10, 2012, Absa’s head of retail markets, Arrie Rautenbach said Islamic banking had always been a strategic initiative of the bank.

“The need for Islamic banking products on the African continent cannot be over-emphasised,” Rautenbach told the publication.

“We are engaging our stakeholders in Barclays to assist with the launch of Islamic banking in certain African jurisdictions including Ghana, Egypt, Tanzania, Uganda and Zambia,” he said.

The Bank of Ghana (BoG) has already indicated its wiliness to accept Islamic banking in the industry but it is yet to receive an application to start that form of banking.

Islamic banking is a type of banking that prohibits the charging of interest on loans.

By Ekow Quandzie

  1. boitumelo motaung says

    here at south Africa we must have Islamic banking course they have shop, in our areas and they make money .

  2. Hamshawu Mustapha says

    It is a laudable idea,most people are afraid to go in for loans because of high interest rates.

  3. Ahmed Abdallah Baghoth says

    Well, am Islamic Banking Analayst and a member of Contact on Islamic Banking in Uganda and we are spear heading for the introduction of Islamic banking in this country which is a a brilliant idea if ABSA is to come to start its operations in Uganda and so the government is looking at amending the laws regarding IBF. The public is much into participation according to my survey and following the workshops and conferences we have been orga anising at Grand Imperial Hotel, Hotel Africana International, Uganda Muslim Supreme Council offices etc as the public is eager to embrace it with one heart. So ABSA you are most welcome!!!!

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